PERRIS, CALIF. — Dalfen Industrial has purchased Markham Distribution Center, an industrial property located at 212 Markham St. in Perris. Terms of the transaction were not released. The 80,527-square-foot property was built in 2019. The acquisition is the eighth West Coast purchase Dalfen has made in the past seven months.
WOODBRIDGE, N.J. — Indianapolis-based Duke Realty Corp. (NYSE: DRE) has broken ground on a 267,575-square-foot, build-to-suit cold storage project in the Northern New Jersey community of Woodbridge for FreezPak Logistics. The facility will consist of roughly 209,500 square feet of freezer space, a 45,760-square-foot cool dock and another 12,000 square feet of office space. The construction plan includes a clear height of 67 feet in the freezer and 30 feet in the cool dock area, as well as 34 dock doors, 70 trailer spaces and 167 automobile parking spaces. David Gheriani, William Waxman, Mindy Lissner and Kevin Dudley with CBRE, along with internal representative Ben Rosen, represented Duke Realty in the lease negotiations with FreezPak.
SOMERSET, N.J. — Denver-based EverWest Real Estate Investors has acquired a 125,790-square-foot industrial property in the Northern New Jersey community of Somerset for $27.7 million. Joel Lubin, John Buckley and Gary Politi of JLL, along with internal agent Stephen Feinberg, negotiated the deal on behalf of EverWest. The seller was Citgen Realty LLC. The Class A property was fully leased to drug developer Rising Pharma Holdings Inc. at the time of sale.
NEW YORK CITY — Greystone has provided two Fannie Mae acquisition loans totaling $17.5 million for a pair of affordable seniors housing properties totaling 151 units in the New York City area. In the first deal, Greystone originated a $12.4 million loan for Highland Avenue Senior Apartments, an 88-unit community in Yonkers that was built in 2008. In the second transaction, the company provided $5.1 million in acquisition financing for 2120 Hughes Avenue, a 63-unit property in The Bronx that was constructed in 1995. Dan Sacks and Ilan Bassali of Greystone originated the loans on behalf of the borrower, Heritage Affordable Communities LLC.
HARRISBURG, PA. — Marcus & Millichap has brokered the $12 million sale of a 927,828-square-foot industrial property in Harrisburg. The complex consists of eight buildings on a 21.3-acre site that are leased to tenants including PP&L Electric Utilities Corp., Capital Building Supply, Martin Logistics and Midwest Transport Inc. Craig Dunkle, Chad Thomason and Mher Vartanian of Marcus & Millichap represented the seller and buyer, both of which were limited liability companies that requested anonymity, in the deal. Sean Beuche of Marcus & Millichap assisted in closing the transaction as the broker of record.
EDISON, N.J. — Colliers International has negotiated the sale of a 30,000-square-foot medical office building in Edison, located roughly midway between Newark and Trenton. At the time of sale, the property was 83 percent leased to five tenants. Kim Kretowicz of Colliers represented the undisclosed seller and procured the buyer, private equity real estate firm Thomas Park, in the transaction.
By Taylor Williams For lenders and investors in New York City’s affordable housing market, accurately underwriting rent growth, operating costs and long-term asset appreciation can be a tricky proposition in today’s economic environment. To be fair, buyers and financiers of affordable housing properties in many U.S. markets are being forced to adjust and recalculate their metrics due to forces they can’t control. Yet macroeconomic factors like rising inflation, which puts heavy pressure on construction and operating costs, can often seem more acute in the Big Apple, where the cost of living and doing business is already higher than virtually anywhere else in the country. Economic Drivers The labor and materials costs for the renovations and rehabilitations that many affordable housing communities need are rising. According to Producer Price Index data supplied by the U.S. Bureau of Labor Statistics, for the month of August, the latest report available at the time of this writing, the aggregate cost of construction materials had risen by 19 percent from August 2019. Much of this rise in materials costs is due to disruption of the global supply chain via COVID-19, causing developers of much-needed housing stock to incur heftier budgets and longer construction timelines on …
REDWOOD CITY, CALIF. — IQHQ, a private life sciences developer and owner with offices in San Diego and Boston, has purchased a “shovel-ready” development site in the Bay Area town of Redwood City that is fully entitled for mixed-use. The firm plans to develop Elco Yards, a project that will feature four life sciences buildings and two residential communities, as well as green space open to the public. The four office buildings will span 600,000 square feet and include laboratory, meeting and research and development space. The buildings are designed to meet LEED Gold standards. “Elco Yards represents an iconic project in a thriving life sciences market with a proven track record of attracting top companies and diverse talent,” says Steve Rosetta, CEO of IQHQ. “We are excited to advance this project, which is fully entitled and well-positioned to address the unmet demand for premier lab space in the Bay Area.” The multifamily portion will include two communities totaling 540 units. IQHQ is partnering with Charleston, S.C.-based Greystar for the residential component, which will feature 147 income-restricted units, according to Redwood City Mayor Diane Howard. “We look forward to Greystar’s continuing involvement and the creation of much-needed housing in Redwood …
SOUTH DAYTONA, FLA. — The Klotz Group of Cos., a Jacksonville, Fla.-based private equity real estate investment platform, plans to develop the Halifax Riverfront Residences & Marina, an $85 million mixed-use multifamily and marina project in South Daytona. Klotz, in partnership with KABR, purchased the site in September 2020 for $1.6 million and immediately began working with the City of South Daytona to review and approve the project. The partnership expects to break ground in late 2022, and construction is expected to take about 24 months. Located at 2941 S. Ridgewood Ave., the Halifax Riverfront Residences & Marina will include 330 residential units, more than 15,000 square feet of commercial space and 145 boat slips. The project will have dockside restaurants and a tiki bar.
SAN DIEGO — Berkadia has secured a $148 million loan for the refinancing of Town & Country Resort in San Diego. The borrower is a partnership between Lowe and Atlas Hotels. Scott Hall and Aaron Lapping of Berkadia arranged the floating-rate loan through Värde Partners for the borrower. Situated on 31 acres in San Diego’s Mission Valley submarket, Town & Country Resort features 671 guest rooms, five food and beverage outlets, two resort pools, a water slide and more than 292,000 square feet of indoor and outdoor meeting space. CoralTree Hospitality Group manages the resort.
